When Miway approves a claim, the applicable excess is the portion you are responsible for. Miway pays the remaining covered amount, subject to the policy terms, the approved claim value and any other applicable deductions.
Illustrative example
If an approved claim is R50 000 and the applicable excess is R5 000, you pay R5 000 and Miway pays the remaining R45 000. This is an example only; your actual excess and settlement depend on your policy and claim.
The excess is not the same as the monthly premium. Your premium keeps the policy active; the excess applies when a covered claim is made and approved.
This is the base amount that applies to a claim under the relevant cover. Insurers may use different labels, so check the exact wording on your policy coversheet or schedule.
This is an amount you choose or adjust when arranging cover. Choosing a higher excess may reduce the monthly premium, while choosing a lower excess may increase it. The available options depend on the product.
An additional excess is charged on top of the standard excess when a condition shown in the policy applies. It may relate to the driver, vehicle use, loss type or another stated circumstance. Your policy coversheet should list the applicable additional excesses.
Excess and premium usually move in opposite directions: a higher voluntary excess can lower the monthly premium, while a lower excess can increase it. The cheaper car insurance premium can be attractive, but it should not leave you with an amount you cannot pay after an accident, theft or other insured loss.
Choose an excess based on what you could realistically afford as a lump-sum claim cost not only on the premium saving today. Ask Miway to show you how different excess options change both figures before you decide.
Miway’s current public guidance says the excess is an out-of-pocket lump-sum amount payable when a claim is approved. The practical payment method can depend on how the claim is settled. For a repair, you may be instructed to pay the approved repairer; for a cash settlement or write-off, the excess may be deducted from the settlement amount.
An excess may still be payable when you claim under your own policy, even if another person appears to have caused the accident. Excess is determined by the policy and claim, while legal fault and recovery from another party are separate questions.
If you have comprehensive cover, Miway may pay for covered damage and try to recover the cost from the responsible party where possible. A recovery is not guaranteed and can take time, especially when the other party is uninsured, disputes fault or cannot be traced.
Miway may pursue a responsible third party after paying a valid claim. If money is successfully recovered, Miway will explain whether and how your excess can be refunded under the applicable process. The outcome depends on the facts, the evidence, the third party and the amount recovered.
For an approved write-off or cash settlement, the applicable excess may be deducted from the amount Miway pays rather than collected separately. Other policy-based deductions may also apply. Your claims adviser will provide the settlement calculation and explain each amount.
A vehicle settlement and finance balance are not necessarily the same. If the vehicle is financed, check whether credit shortfall cover is included and review the terms of that cover separately.
Before selecting or changing your excess, ask yourself:
• Could I pay this amount in one lump sum after an unexpected loss?
• Would paying it affect essential expenses or force me to use expensive credit?
• How much premium would I actually save by choosing a higher excess?
• Could an additional excess apply because of the driver or claim circumstances?
• What amounts are shown on the quote and policy coversheet?
A sensible excess is one that balances a manageable monthly premium with an amount you could realistically afford when you need to claim.
Repair claim
Standard plus additional excess
Write-off settlement
• Check the standard and additional excesses on your policy coversheet.
• Make sure you could afford the total possible excess as a lump sum.
• Compare the premium and excess together before changing either amount.
• Ask Miway to explain any excess label or claim circumstance you do not understand.
• At claim stage, follow Miway’s payment instructions and use only approved channels or service providers.
Ready to compare your options? Get a Miway car insurance quote. Need to claim? Follow the Miway claims process.
